With a grey market premium of ₹41, Seshaasai Technologies is making its stock market debut on September 30 with a potential gain of 9.69%. With a high subscription rate and significant interest from both retail and QIB investors, the IPO is expected to raise ₹813 crore.
IPO GMP for Seshaasai Technologies
On Tuesday, September 30, Seshaasai Technologies is scheduled to launch on the stock market, and the grey market premium (GMP) suggests that the company is off to a strong start. Following the September 23–25 subscription window, the IPO allocation was finalized on September 26. The initial public offering was priced between ₹402 to ₹423 per share.
IPO GMP for Seshaasai Technologies
On Monday, the Seshaasai Technologies IPO GMP was ₹41, suggesting that listing profits of around 9.69 percent were possible. In light of this premium, shares are anticipated to list at roughly ₹464, as opposed to the ₹423 maximum price range.
Expert Opinion
“With almost 70 times the total subscription and QIBs bidding nearly 190 times, investor appetite has been very strong for this IPO,” stated Harshal Dasani, Business Head, INVasset PMS. He continued by saying that the ₹813 crore problem shows faith in the company’s ability to lead as the second-largest card producer in India, with a roughly 32% market share.
Dasani claims that the company’s EBITDA margins increased to 24.6 percent and that its revenue increased from roughly ₹1,146 crore in FY23 to ₹1,463 crore in FY25.
While the company plans to use the cash to reduce debt and expand capacity in premium card offerings like metal and biometric formats, ROE and ROCE are still robust at about 35% and 32%, respectively.
Seshaasai has a scalable runway thanks to the industry’s tailwinds, which include growing EMV usage, fintech co-branded cards, and secure IoT-enabled solutions. Given the growth trajectory, valuations of about 28 times FY25 profits seem acceptable; nonetheless, a significant risk is the concentration of BFSI clients. Sentiment is strong, with retail subscribers more than nine times and non-institutional subscribers around fifty-one times. According to the gray market premium, this is largely a listing gains candidate with the possibility for a longer hold provided IoT diversification and deleveraging execution continue on course,” he continued.
Status of Seshaasai Technologies’ IPO Subscription, Important Information
Demand for the ₹813.07 crore IPO was strong in all categories. Retail investors subscribed 9.46 times, NIIs 51.43 times, and QIBs 189.49 times their quota. With a ₹40 discount, the employee portion was subscribed to 9.50 times.
The offer comprised an OFS of 0.79 crore shares valued at ₹333.07 crore and a new issuance of 1.13 crore shares valued at ₹480 crore. The OFS was attended by promoters Gautam Sampatraj Jain and Pragnyat Pravin Lalwani.
A retail investment of ₹14,805 at the top price was required for investors to apply for a minimum lot size of 35 shares. Additionally, up to 52,219 shares are reserved for staff at a price of ₹40.00 per share.
Aside from general corporate uses, ₹195.33 crore of the proceeds from the new issue are designated for capital expenditures on current production facilities and ₹300 crore for debt repayment or prepayment.
The issue’s registrar is MUFG Intime India Pvt. Ltd., and the book-running lead manager is IIFL Capital Services Ltd.
About Technologies Seshaasai
With a primary focus on the banking, financial services, and insurance (BFSI) industry, Seshaasai Technologies Limited is a technology-driven, multi-location solutions provider that specializes in payment systems, communications, and fulfilment services. The company was founded in 1993.
The business supports BFSI operations throughout India by providing scalable, recurring solutions through proprietary platforms. Additionally, it offers clients in a variety of industries Internet of Things (IoT) solutions.
With the help of highly qualified workers and cutting-edge equipment, it runs 24 manufacturing facilities in seven different sites around India. In terms of finances, it has shown impressive growth, with operating revenue increasing at a compound annual growth rate (CAGR) of 52.21 percent from ₹672.56 crore in FY22 to ₹1,558.26 crore in FY24. With a compound annual growth rate (CAGR) of 112.88 percent, net profit increased from ₹37.35 crore in FY22 to ₹169.28 crore in FY24.
